MGRADES
MBA Test – Finance UPDATED ACTUAL
Exam Questions and CORRECT Answers
What is CAGR? - CORRECT ANSWER - Compound Annual Growth Rate (CAGR
rhymes with yeager) - it's the average annual growth rate you will receive from an investment
over a specified period of time.
What is NSM's market cap as of August 18? - CORRECT ANSWER - $1.549 billion
What's the 52 week range of the stock price been? - CORRECT ANSWER - $8.290 -
$16.900
What's the NSM beta, as of August 23? - CORRECT ANSWER - .89 - so when the market
moves NSM makes about 89% of the same movement
How many shares of NSM are outstanding? - CORRECT ANSWER - 97.4 million
What was NSM's net margin in 2012, and what was the net margin of peers? - CORRECT
ANSWER - NSM's net margin in 2012 was 26.1%; peers' average net margin was at
14.5%
What was NSM's net margin in 2015? - CORRECT ANSWER - 3.1%, compared to peers'
net margin of 1.2%
What has NSM's net margin been each year since 2011? - CORRECT ANSWER - 7.7% in
2011, 26.1% in 2012; 14% in 2013; 15.2% in 2014; 3.1% in 2015
What does LTM stand for? - CORRECT ANSWER - Last twelve months
, MGRADES
What are earning assets? - CORRECT ANSWER - Income Producing Investments - they
can include stocks, bonds, dividends, and investment properties
What is net interest income? - CORRECT ANSWER - It's the difference between money
brought in from investments and interest paid. In other words, did the bank make enough off its
investments to cover the cost of the debt? If no, it should just pay down the debt. The formula is:
(investment returns - interest expenses)/average earning assets
What is stockholder's equity? - CORRECT ANSWER - Total assets minus total liabilities
What was loan service revenue in 2015? - CORRECT ANSWER - $1.305 billion, down
from $1.376 in 2014
What's a p/e ratio? - CORRECT ANSWER - It represents how much a stockholder is
willing to pay per share when compared to the EPS (earnings per share). So if EPS is $2 and the
price of the share is $20 the P/E ratio is 10, because the shareholder is paying 10 times the
earnings for that share.
What are the phases of inbound marketing, from both the company and customer perspective? -
CORRECT ANSWER - From company perspective: Attract, Convert, Close, Delight
From customer perspective: Strangers, visitors, leads, customers
What are some of the tactics associated with the customer phases? - CORRECT
ANSWER - For Strangers to visitors; adwords, blogs, keywords, social
For Visitors to Leads: landing pages, offer forms
For Leads to Customers: CRM, emails, workflows
For Customers to promoters: Survey, personalized websites, social monitoring
How much did Solutionstar(xome) spend to buy Real Estate Digital, and what did (does) Real
Estate Digital include? - CORRECT ANSWER - Solutionstar (Xome) paid $18 million to
MBA Test – Finance UPDATED ACTUAL
Exam Questions and CORRECT Answers
What is CAGR? - CORRECT ANSWER - Compound Annual Growth Rate (CAGR
rhymes with yeager) - it's the average annual growth rate you will receive from an investment
over a specified period of time.
What is NSM's market cap as of August 18? - CORRECT ANSWER - $1.549 billion
What's the 52 week range of the stock price been? - CORRECT ANSWER - $8.290 -
$16.900
What's the NSM beta, as of August 23? - CORRECT ANSWER - .89 - so when the market
moves NSM makes about 89% of the same movement
How many shares of NSM are outstanding? - CORRECT ANSWER - 97.4 million
What was NSM's net margin in 2012, and what was the net margin of peers? - CORRECT
ANSWER - NSM's net margin in 2012 was 26.1%; peers' average net margin was at
14.5%
What was NSM's net margin in 2015? - CORRECT ANSWER - 3.1%, compared to peers'
net margin of 1.2%
What has NSM's net margin been each year since 2011? - CORRECT ANSWER - 7.7% in
2011, 26.1% in 2012; 14% in 2013; 15.2% in 2014; 3.1% in 2015
What does LTM stand for? - CORRECT ANSWER - Last twelve months
, MGRADES
What are earning assets? - CORRECT ANSWER - Income Producing Investments - they
can include stocks, bonds, dividends, and investment properties
What is net interest income? - CORRECT ANSWER - It's the difference between money
brought in from investments and interest paid. In other words, did the bank make enough off its
investments to cover the cost of the debt? If no, it should just pay down the debt. The formula is:
(investment returns - interest expenses)/average earning assets
What is stockholder's equity? - CORRECT ANSWER - Total assets minus total liabilities
What was loan service revenue in 2015? - CORRECT ANSWER - $1.305 billion, down
from $1.376 in 2014
What's a p/e ratio? - CORRECT ANSWER - It represents how much a stockholder is
willing to pay per share when compared to the EPS (earnings per share). So if EPS is $2 and the
price of the share is $20 the P/E ratio is 10, because the shareholder is paying 10 times the
earnings for that share.
What are the phases of inbound marketing, from both the company and customer perspective? -
CORRECT ANSWER - From company perspective: Attract, Convert, Close, Delight
From customer perspective: Strangers, visitors, leads, customers
What are some of the tactics associated with the customer phases? - CORRECT
ANSWER - For Strangers to visitors; adwords, blogs, keywords, social
For Visitors to Leads: landing pages, offer forms
For Leads to Customers: CRM, emails, workflows
For Customers to promoters: Survey, personalized websites, social monitoring
How much did Solutionstar(xome) spend to buy Real Estate Digital, and what did (does) Real
Estate Digital include? - CORRECT ANSWER - Solutionstar (Xome) paid $18 million to
